AEM Holdings ($SGX-AWX) – A Top Backend Semiconductor Company with Multiple Growth Catalysts, Trading at 10x Forward PE. One of the cheapest ATE companies around. Medium Term Fair Value at SGD 5.00

Sharing an SGX Investment Idea today.

Being an investor in the Malaysian market, tech manufacturing stocks in areas of contract manufacturing / OSAT / EMS and ATE (Automated Test Equipment) are aplenty but are usually at ridiculous valuations..

It was then extremely refreshing to find a name in the same backend semiconductor space, which has a strong balance sheet (net cash of 15% of market cap), extremely profitable (OPM in the 20%), a trusted supplier of the world’s largest semiconductor chip manufacturer (Intel) with close to 2 decades of relationship, trading at a mere 10x forward PE ratio!

Full analysis in the following attachement. Still a learner of the semiconductor sector. Do let me know if I miss anything!

Tagging some tech sector enthusiast: @wsoh @ValinV @JXWK0116 @asheryap @terence775 @Jay888 @weixiang98 @Jinnsern @andyyap1993 @TBLau